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Problem 16-9 (Algo) Interest rates and bond ratings [LO 16-2] Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 14 percent
Problem 16-9 (Algo) Interest rates and bond ratings [LO 16-2] Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 14 percent yield. After 10 years the bonds have been upgraded to Aa2. Such bonds are currently yielding 12 percent to maturity. Use Table 16-2. Determine the price of the bonds with 15 years remaining to maturity. Price of the bonds
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
12th edition
133423824, 978-0133423822
